Chattel Mortgage is essentially a Mortgage over goods to be financed.

Chattel Mortgage is classed as a cash sale in that the goods automatically become yours on purchase and the finance company takes a mortgage over the chattels. The financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a "mortgage" over the vehicle as security for the loan.

The Chattel Mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement), regardless of whether the client accounts for GST on a cash or accruals basis.

The Chattel mortgage is a very flexible finance option, in that, you have the ability to either finance the full purchase price or alternatively, you can include an upfront deposit or trade-in to reduce your commitment, while a Balloon payment option may also be placed at the end of the term to represent the vehicle’s end value


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